A Research On Offshore Banking Development Strategy In Minor Enterprises For China Merchants Bank

Under the current international situation and the profound impact of financial crisis,China is about to embrace a major change in the internationalization of RMB, offshorefinancial business of commercial banks will play an important role in this process. inrecent years, SMEs is becoming increasingly important in China’s economy, itsinternational demand is also increasing. China Merchants Bank SME offshore businesscan not meet customer needs. Thesis studies the development strategy of SME offshoreindustry in China Merchants Bank, which has practical significance in enhancing offshorebusiness in China Merchants Bank as well as its core competitiveness.Thesis mainly uses literature study, from the macro environment and marketcompetition point of view, analyses the development of China Merchants Bank SME foroffshore business. SME offshore business has dual characteristics of SME and offshorebusiness, SMEs understanding of offshore business, offshore banking products and bankrisk control ability will affect the development of SMEs in offshore business With thedomestic economic development, SMEs demand for cross-border operations is increasing,China Merchants Bank has to develop offshore business in SMEs in order to enhance itscompetitiveness in the industry. There are many shortcomings in the existing SMEoffshore in China Merchants Bank, such as insufficient resource allocations, inadequateincentive mechanisms and only model for client risk management. Thesis uses the SWOTanalysis to further analyses the development of SMEs in offshore business of ChinaMerchants Bank ’s internal and external environment, combined with China MerchantsBank abundant offshore business experience, good service brand, as well as the significantopportunities brought up by the establishment of Shanghai FTA, etc., put forward adevelopment strategy for China Merchants Bank SMEs offshore business: the formationof strategic partnership of SME customers, the initiative to explore its offshore businessneeds, specific SME offshore business products targeting SME. Finally, Thesis analysesthe risks in the implementation of the above development strategy: the nonstandardmanagement of SME customer, difficulties in identifying customer information toaccurately rating its risk. Learning the advanced SME risk management experience from Bank of Singapore and America’s Wells Fargo. Thesis offer the advice on how to managethe risk in SME offshore business that is building SME risk management system throughthe management structures and its institution, refining SME customer identificationsystem.